Developers in UAE rally on Q1; Saudi row weighs on Egypt


30/04/2012 07:14 AST  Gulf Times

UAE property stocks rose yesterday after three developers posted higher earnings but the country’s bourses ended mixed, while Egypt’s benchmark slipped after Saudi Arabia recalled its ambassador from Cairo.

In Abu Dhabi, Aldar Properties climbed 4.4% to a two-week high.

The developer’s quarterly net profit more than doubled, beating analysts’ estimates.

Rival Sorouh Real Estate, which is merger talks with Aldar, gained 1.7% after posting a 30-percent rise in earnings, which were shy of forecasts.

Meanwhile, Dubai’s bellwether Emaar Properties advanced 0.3% after its first-quarter profit jumped 44%.

Abu Dhabi’s index finished 0.2% higher while Dubai’s benchmark fell 0.8%, its eighth decline in 10 sessions to trim its 2012 gains to 21.1%.

Builder Arabtec was the main drag, falling 4.7% as investors booked recent gains. In Saudi Arabia, the index declined 0.7% as investors booked profits from Saturday’s gains, awaiting new catalysts to lift the market.

In Egypt, the benchmark slipped 0.3%, on concerns $2.7bn in financial aid pledged by Saudi Arabia could be delayed after Riyadh withdrew its envoy following protests at its embassy against the kingdom’s arrest of an Egyptian lawyer.

“We were awaiting the injection from Saudi Arabia, which may now be delayed, and that could delay other money,” said Osama Mourad, CEO of Arab Finance Brokerage. “That money seemed somehow easier to secure because of the emotional and political ties.”

In Oman, the index climbed 0.5%, halting a six-session losing streak as bargain hunters returned.

Elsewhere in the Gulf, Kuwait’s index ended flat 6,337 points and Bahrain’s measure gained 0.3% at 1,149 points.

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